County council heads for a £1.4 million surplus

With three months left of the financial year, Powys County Council is predicting a budget surplus of just under £1.4 million at the end of March.

At a meeting of the council’s Finance Panel on Friday, February 20, councillors will have the opportunity of scrutinising the performance of the 2025/2026 budget during the third quarter of the year from October 1 to December 31.

This year the council’s budget is just over £367 million, and finance chiefs forecast on December 31 that the authority will spend £366.2 million by the end of March.

At that stage the surplus is predicted to be £839,000 but following movements within the council’s “specific reserve” accounts of £543,000 the surplus goes up to £1.382 million.

This is an improvement on the £800,000 surplus that was being reported in September, but still a long way off the £2.2 million surplus that was being predicted at the end of June last year.

Director of corporate services and s151 officer Jane Thomas said: “The continued underspend position is positive; our projections are supported by the receipt of additional grant funding released during the year by Welsh Government.”

But she concedes the surplus is “minimal.”

Ms Thomas said: “We cannot underestimate the continued rigour needed in budget delivery and the achievement of savings.

“Maintaining financial resilience is predicated on the delivery of a balanced budget, limiting only essential and planned reserve use, robust financial management and realignment of service delivery to remain within budget is essential.

“The Senedd elections add uncertainty to our funding for next and future years.

“A positive budget position for this year and using any opportunities that arise over the latter months of the year will ensure that the council is best placed to manage the challenges ahead.”

To balance the books £16 million worth of cuts and efficiencies are needed and this includes £3.7 million from past budgets.

The report explained that £11.167 million had been “actually achieved” by the end of 2025 with £1.061 million said to be “not achieved but assured.”

A further £528,000 worth of savings has been found by departments and has taken the place of proposals that have fallen through during the year.

This leaves £3.279 million at risk of not being delivered – this figure includes £2.419 million from Social Services.

The report explains that £1.950 million is from Adult Services.

The report said: “A number of savings (worth) £1.950 million, are no longer expected to be deliverable and will be carried forward to 2026/2027.”

Similarly, the report explains that £469,000 from Children’s Services is also “deemed unachievable.”

A further £506,000 that had been proposed by Highways Transport and Recycling (HTR) is also set to be rolled over into next year’s budget.

Comments from the Finance Panel will be added to the report before it goes to a Cabinet meeting later this month.

By Elgan Hearn, Local Democracy Reporting Service